DoD's $18.8M Chilled Meats Contract Awarded to Tyson Foods Amidst Limited Competition

Contract Overview

Contract Amount: $18,801,873 ($18.8M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Defense

Start Date: 2011-01-01

End Date: 2011-03-31

Contract Duration: 89 days

Daily Burn Rate: $211.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE-SEC B CHILLED MEATS

Place of Performance

Location: SPRINGDALE, WASHINGTON County, ARKANSAS, 72762

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to TYSON FOODS INC. for work described as: RESALE-SEC B CHILLED MEATS Key points: 1. The Department of Defense awarded $18.8 million for chilled meats, primarily to Tyson Foods. 2. Competition was limited, raising questions about price discovery and potential taxpayer impact. 3. The contract falls under the Poultry Processing NAICS code, a common sector for food procurement. 4. The award was a delivery order, suggesting it's part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $18.8 million for a 3-month period is substantial. Without specific benchmarks for chilled meats for the military, it's difficult to definitively assess pricing, but the limited competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition award. This lack of open bidding restricts price discovery and may lead to less favorable pricing for the government.

Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price, potentially impacting taxpayer funds negatively.

Public Impact

Military personnel and their families will receive chilled meat products. The contract supports a major food processing company, Tyson Foods. Limited competition in defense contracts can lead to higher costs for taxpayers. The Defense Commissary Agency manages the procurement of goods for military commissaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmarks
Potential for inflated pricing

Positive Signals

Essential goods procurement
Award to established supplier

Sector Analysis

This contract falls within the food and beverage sector, specifically processed meats. Defense spending in this area is consistent, but the limited competition here is a point of concern for efficiency.

Small Business Impact

The data indicates the award went to Tyson Foods Inc., a large corporation. There is no indication that small businesses were involved in this specific contract award.

Oversight & Accountability

The Defense Commissary Agency is responsible for this procurement. Oversight would focus on ensuring contract terms are met and pricing remains reasonable, though limited competition hinders this.

Related Government Programs

Poultry Processing
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Limited competition
Lack of transparency in justification for limited competition
Potential for non-competitive pricing
Short contract duration (89 days) may indicate a stop-gap measure or part of a larger, unstated contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to TYSON FOODS INC.. RESALE-SEC B CHILLED MEATS

Who is the contractor on this award?

The obligated recipient is TYSON FOODS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2011-01-01. End: 2011-03-31.

What was the specific justification for limiting competition on this contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be documented by the agency, outlining reasons such as urgency, lack of qualified sources, or specific technical requirements that only one vendor could meet. Without this documentation, it's impossible to fully assess the validity of the limited competition.

How does the per-unit cost of these chilled meats compare to commercial market rates?

Direct comparison is challenging without specific product details and market data. However, limited competition often results in prices higher than those found in a fully competitive market. The Defense Commissary Agency should have internal benchmarks or conduct market research to ensure fair and reasonable pricing, even in sole-source situations.

What is the long-term impact of awarding such significant contracts with limited competition on the DoD's overall food procurement strategy?

Consistently awarding contracts with limited competition can stifle innovation and prevent the government from benefiting from potentially lower prices offered by a wider range of suppliers. It may also reduce the incentive for vendors to compete aggressively on future bids, potentially leading to sustained higher costs for essential goods.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Poultry Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 DON TYSON PKWY, SPRINGDALE, AR, 72762

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,801,873

Exercised Options: $18,801,873

Current Obligation: $18,801,873

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0110G4001

IDV Type: BOA

Timeline